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KSH International is getting ready to open its ₹710 crore IPO on December 16.
KSH International makes magnet winding wires that are used in motors and other electrical equipment, and it is already one of the leading manufacturers in India.
FYI: A CARE report says the company is likely to become the country’s biggest exporter in this segment by export revenue in FY25.
What’s happening: the company itself will bring in ₹420 crore by creating and selling new shares, and the main existing owners, called promoters, will sell some of their own shares worth ₹290 crore through an offer-for-sale, as mentioned in its Red Herring Prospectus filed on December 10.
The why: out of the IPO money, about ₹87 crore will go into buying and installing new machines at its Supa and Chakan plants. Around ₹8.8 crore will be used to set up a rooftop solar power plant at the Supa unit to generate its own electricity, and the rest will be used for other business needs.
Zoom out: looking ahead, India’s magnet winding wire market is expected to become a $5.25 billion business by 2028. In terms of quantity, the market is expected to reach about 6.67 lakh tonnes by 2028, growing at roughly 4% a year.
This growth is mainly because India is upgrading its power system, investing in better electricity grids, more EVs on the road, and people are using more energy-efficient appliances at home and in offices.
